The proposed bill, S. 306, seeks to amend the South Carolina Code of Laws by adding Section 12-6-3830, which establishes a tax credit for taxpayers whose children attend qualifying private schools, parochial schools, or home schools for grades K-12. The tax credit amounts vary by year, starting at $2,000 for the 2025 tax year, increasing to $4,000 in 2026, $6,000 in 2027, and reaching $8,500 for 2028 and subsequent years. The credit is refundable beginning in 2027. To qualify, schools must meet specific criteria, including providing an affidavit of K-12 status and making financial statements available to families. Additionally, taxpayers claiming this credit cannot also claim the exceptional needs tax credit in the same year.

The bill also includes provisions to ensure compliance and enforcement, allowing parents to assert violations in legal proceedings and seek damages. The Attorney General is granted authority to enforce compliance with the new section. Furthermore, the bill mandates reductions in State Aid to Classrooms for each student who transitions from public to qualifying private or home schools, with specified amounts for each school year. The Department of Revenue is tasked with establishing regulations for implementation, and the bill will take effect upon the Governor's approval.

Statutes affected:
02/04/2025: 12-6-3830
Latest Version: 12-6-3830